CSSB 4002(FIN): "An Act amending the bulk fuel bridge loan fund; amending the power cost equalization program, repealing the exclusion from eligibility for power cost equalization for certain power projects that take their power from hydroelectric facilities, and amending the definition of 'eligible electric utility' as it applies to the power cost equalization program and the grant program for small power projects for utility improvements; establishing the Alaska resource rebate program and relating to that program; and providing for an effective date."
00 CS FOR SENATE BILL NO. 4002(FIN) 01 "An Act amending the bulk fuel bridge loan fund; amending the power cost equalization 02 program, repealing the exclusion from eligibility for power cost equalization for certain 03 power projects that take their power from hydroelectric facilities, and amending the 04 definition of 'eligible electric utility' as it applies to the power cost equalization program 05 and the grant program for small power projects for utility improvements; establishing 06 the Alaska resource rebate program and relating to that program; and providing for an 07 effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 29.60.660(c) is amended to read: 10 (c) Loans made from the bulk fuel bridge loan fund to one borrower in a fiscal 11 year 12 (1) may not exceed $750,000 [$500,000]; and 13 (2) shall be repaid within one year after the date of the award.
01 * Sec. 2. AS 42.45.110(c) is repealed and reenacted to read: 02 (c) The amount of power costs for which equalization is paid to an electric 03 utility is the difference between 04 (1) 10 cents a kilowatt-hour; and 05 (2) the lowest of the following: 06 (A) $1.15 a kilowatt-hour; 07 (B) power costs as determined by the commission under (a) of 08 this section; or 09 (C) the average rate for each eligible kilowatt-hour sold. 10 * Sec. 3. AS 42.45.110(c), as repealed and reenacted by sec. 2 of this Act, is repealed and 11 reenacted to read: 12 (c) The amount of power cost equalization provided for each kilowatt-hour 13 under (b) of this section may not exceed 95 percent of the power costs, or the average 14 rate for each eligible kilowatt-hour sold, whichever is less, as determined by the 15 commission. However, 16 (1) during the state fiscal year that began July 1, 1999, the power costs 17 for which power cost equalization were paid to an electric utility were limited to 18 minimum power costs of more than 12 cents a kilowatt-hour and less than 52.5 cents a 19 kilowatt-hour; and 20 (2) during each following state fiscal year, the commission shall adjust 21 the power costs for which power cost equalization may be paid to an electric utility 22 based on the weighted average retail residential rate in Anchorage, Fairbanks, and 23 Juneau; however, the commission may not adjust the power costs under this paragraph 24 to reduce the amount below the lower limit set out in (1) of this subsection. 25 * Sec. 4. AS 42.45.110 is amended by adding new subsections to read: 26 (j) The power cost equalization for each kilowatt-hour calculated under (c) of 27 this section may be determined for a utility without historical kilowatt-hour sales data 28 by using kilowatt-hours generated. 29 (k) Notwithstanding (c) of this section, an electric utility shall receive not less 30 than five cents a kilowatt-hour in power cost equalization under (b)(2) of this section. 31 * Sec. 5. AS 42.45.150(2) is amended to read:
01 (2) "eligible electric utility" or "electric utility" means a public, 02 cooperative, or other corporation, company, individual, or association of individuals, 03 and includes the lessees, trustees, or receivers appointed by a court, that 04 [(A)] owns, operates, manages, or controls a plant or system for 05 the furnishing, by generation, transmission, or distribution, of electric service 06 to the public for compensation [; 07 (B) DURING CALENDAR YEAR 1983, HAD A 08 RESIDENTIAL CONSUMPTION LEVEL OF POWER ELIGIBLE FOR 09 POWER COST EQUALIZATION UNDER FORMER AS 44.83 OF LESS 10 THAN 7,500 MEGAWATT HOURS OR HAD A RESIDENTIAL 11 CONSUMPTION LEVEL OF POWER ELIGIBLE FOR POWER COST 12 EQUALIZATION UNDER FORMER AS 44.83 OF LESS THAN 15,000 13 MEGAWATT HOURS IF THE UTILITY SERVED TWO OR MORE 14 MUNICIPALITIES OR UNINCORPORATED COMMUNITIES; AND 15 (C) DURING CALENDAR YEAR 1984, USED DIESEL 16 FIRED GENERATORS TO PRODUCE MORE THAN 75 PERCENT OF 17 THE ELECTRICAL CONSUMPTION OF THE UTILITY; AN ELECTRIC 18 UTILITY THAT IS A SUBSIDIARY OF ANOTHER ELECTRIC UTILITY 19 IS AN "ELIGIBLE ELECTRIC UTILITY" IF THE OPERATIONS OF THE 20 SUBSIDIARY, CONSIDERED SEPARATELY, MEET THE ELIGIBILITY 21 REQUIREMENTS OF AS 42.45.100 - 42.45.150; IF AN ELECTRIC 22 UTILITY DID NOT RECEIVE POWER COST ASSISTANCE IN 1983 BUT 23 IS OTHERWISE ELIGIBLE FOR POWER COST EQUALIZATION 24 UNDER AS 42.45.100 - 42.45.150, THE UTILITY IS AN "ELIGIBLE 25 ELECTRIC UTILITY"]; 26 * Sec. 6. AS 42.45.150(2), as amended by sec. 5 of this Act, is amended to read: 27 (2) "eligible electric utility" or "electric utility" means a public, 28 cooperative, or other corporation, company, individual, or association of individuals, 29 and includes the lessees, trustees, or receivers appointed by a court, that 30 (A) owns, operates, manages, or controls a plant or system for 31 the furnishing, by generation, transmission, or distribution, of electric service
01 to the public for compensation; 02 (B) during calendar year 1983, had a residential 03 consumption level of power eligible for power cost equalization under 04 former AS 44.83 of less than 7,500 megawatt-hours or had a residential 05 consumption level of power eligible for power cost equalization under 06 former AS 44.83 of less than 15,000 megawatt-hours if the utility served 07 two or more municipalities or unincorporated communities; and 08 (C) during calendar year 1984, used diesel-fired generators 09 to produce more than 75 percent of the electrical consumption of the 10 utility; an electric utility that is a subsidiary of another electric utility is an 11 "eligible electric utility" if the operations of the subsidiary, considered 12 separately, meet the eligibility requirements of AS 42.45.100 - 42.45.150; if 13 an electric utility did not receive power cost assistance in 1983 but is 14 otherwise eligible for power cost equalization under AS 42.45.100 - 15 42.45.150, the utility is an "eligible electric utility"; 16 * Sec. 7. AS 42.45.250(e) is amended to read: 17 (e) Loans made from the bulk fuel revolving loan fund to one borrower in any 18 fiscal year 19 (1) may not exceed $750,000 [$500,000], or, if the borrower is a 20 cooperative corporation organized under AS 10.15 or an electric cooperative 21 organized under AS 10.25 and uses the loan to purchase bulk fuel on behalf of more 22 than one community, may not exceed the lesser of $750,000 [$500,000] multiplied by 23 the number of communities on whose behalf the bulk fuel is to be purchased, or 24 $1,800,000; 25 (2) shall be repaid in one year or less; and 26 (3) may not exceed 90 percent of the wholesale price of the fuel 27 purchased. 28 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 ALASKA RESOURCE REBATE PROGRAM ESTABLISHED. Subject to 31 appropriations and availability of funds for the program, the Alaska resource rebate program
01 is established to provide residents of the state with resource rebates under sec. 9 of this Act 02 and to provide persons with emergency energy relief under sec. 10 of this Act. 03 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 RESOURCE REBATES. (a) To provide residents of the state with a resource rebate, 06 the amount of the 2008 permanent fund dividend shall be increased. After calculating the 07 amount of the 2008 dividend under AS 43.23.025, the commissioner of revenue shall add 08 $500 to determine the total amount of that dividend. 09 (b) A veteran or the spouse or dependent of a living or deceased veteran who did not 10 apply for the 2008 permanent fund dividend and is eligible for veterans' benefits under 38 11 U.S.C. 1315, 1513, 1521, 1541, and 1542 may apply to the Department of Revenue for a $500 12 Alaska resource rebate payment for 2008. The individual shall apply on a form provided by 13 the department not later than October 1, 2008, and shall demonstrate that the individual would 14 have been eligible to receive a 2008 permanent fund dividend under AS 43.23, except that the 15 individual did not apply for that dividend. 16 (c) A veteran or the spouse or dependent of a living or deceased veteran who is 17 eligible for veterans' benefits under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 who is 18 denied or receives reduced payments under those provisions or reduced health care benefits 19 solely because the $500 increase in the dividend under (a) of this section or the $500 payment 20 under (b) of this section received by the individual is counted as income is eligible for cash 21 assistance under AS 47.25.120 - 47.25.300 (general relief assistance). Notwithstanding the 22 limit in AS 47.25.130, the individual is entitled to receive the same amount as the individual 23 would have received under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 and as a health care 24 benefit as a result of being eligible under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542, had 25 the $500 increase or payment not been received under (a) or (b) of this section. 26 (d) Subject to appropriation, the amount necessary for resource rebates to increase 27 2008 permanent fund dividends under (a) of this section shall be transferred from the general 28 fund to the dividend fund (AS 43.23.045). 29 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 EMERGENCY ENERGY RELIEF. (a) The Alaska Energy Authority shall provide
01 persons with emergency energy relief payments to offset the cost of fuel used for residences. 02 (b) Subject to (e) of this section, a person may receive an emergency energy relief 03 payment based on the amount that exceeds $3.00 a gallon that the person pays for each gallon 04 of fuel delivered September 1, 2008, through March 31, 2009, and September 1, 2009, 05 through March 31, 2010, for a building in the state that is primarily used for one or more 06 residences. The amount of the emergency energy relief payment must include an amount to 07 reimburse the sales tax that the individual paid for the fuel for which the emergency energy 08 relief payment is made, except that the amount of reimbursement included in the payment 09 must be based on the sales tax rate in effect on the effective date of this section. Payments 10 may not be made for more than 600 gallons of fuel used for a single family residence during 11 September 1, 2008, through March 31, 2009, and 600 gallons of fuel used for a single family 12 residence during September 1, 2009, through March 31, 2010. Payments may not be made for 13 more than 300 gallons of fuel for each unit in a multifamily building used for that building 14 during September 1, 2008, through March 31, 2009, and 300 gallons of fuel for each unit in a 15 multifamily building used for that building during September 1, 2009, through March 31, 16 2010. A payment may not be made for fuel used for a building owned by a governmental 17 entity. A person may apply for and receive more than one emergency energy relief payment. 18 If the authority estimates that appropriations to the authority are insufficient to fully fund 19 emergency energy relief, the authority may eliminate or reduce the payments on an equitable 20 basis. 21 (c) A landlord or lessor that receives a payment under this section shall pass on a 22 benefit to the landlord's or lessor's tenant by lowering the amount of rent by the amount 23 attributable to the tenant's unit. A landlord or lessor may retain up to 10 percent of the 24 payment otherwise required to be passed on to the tenant to cover administrative costs. Failure 25 to comply with the requirement of this subsection is a violation of AS 45.50.471. The 26 authority may audit the books and records of a landlord or lessor for compliance with this 27 subsection. 28 (d) The authority 29 (1) shall administer this section, but may contract for the performance of some 30 or all of those administrative duties; and 31 (2) may adopt regulations under AS 44.62 to implement this section.
01 (e) A person who is an individual is eligible to receive a payment under this section 02 only if the individual is a state resident under AS 01.10.055. In addition, to receive a payment 03 under this section, a person shall 04 (1) apply, before July 1, 2010, for the payment on a form provided by the 05 authority; 06 (2) provide, with each application, proof of purchase of fuel from a qualified 07 distributor on the list prepared under (f) of this section; 08 (3) verify that the fuel is used for a building that is primarily used for one or 09 more residences, identify the building, and identify the number of residential units in the 10 building; 11 (4) verify that the building is not owned by a government entity; 12 (5) supply other information that may be required by the authority. 13 (f) A business or other entity that supplies fuel for use in residential buildings may 14 apply in a manner required by the authority for inclusion on the qualified distributor list 15 prepared and kept updated by the authority under this subsection. As a condition of becoming 16 a qualified distributor, the business or other entity must submit a signed statement to the 17 authority, under penalty of unsworn falsification, on a form or in a format prescribed by the 18 authority, that the business or other entity will not increase its price for fuel solely in response 19 to this section, and that the business's or other entity's pricing policy will remain consistent 20 with prior practices and be based on the same criteria, as though this section had not been 21 enacted. The authority may audit a qualified distributor's books and records to confirm that 22 the statement made under this subsection is complete and accurate. If the distributor 23 reasonably believes a delivery of fuel is made to a building primarily used for one or more 24 residences, during September 1, 2008, through March 31, 2009, or during September 1, 2009, 25 through March 31, 2010, the distributor shall agree to identify the delivery as residential in a 26 manner prescribed by the authority. The distributor shall agree to submit to the authority its 27 billing statements for purchases of fuel for residences and related customer and sales 28 information that may be requested by the authority from time to time. The distributor shall 29 provide other information required by the authority. 30 (g) A person aggrieved by a decision of the authority regarding the person's eligibility 31 to receive an emergency energy relief payment, other than a determination based on
01 insufficient funding for emergency energy relief, may request a hearing before the office of 02 administrative hearings established under AS 44.64. 03 (h) A person is liable to the state for the value of emergency energy relief improperly 04 paid under this section if the improper payment was based on inaccurate or false information 05 provided by the person. In a civil action brought by the state to recover from the person the 06 value of the emergency energy relief improperly paid, the state may recover from the person 07 the costs of investigation and prosecution of the civil action, including attorney fees as 08 determined under court rules. 09 (i) In determining the eligibility of an individual under a public assistance program 10 administered by the Department of Health and Social Services in which eligibility for 11 assistance is based on financial need, the Department of Health and Social Services may not 12 consider a payment under this section as income or resources received by the individual or by 13 a member of the individual's household unless required to do so by federal law. The 14 Department of Health and Social Services shall notify all recipients of public assistance of the 15 effects of receiving emergency energy relief. 16 (j) An individual who is denied medical assistance under 42 U.S.C. 1396 - 1396v 17 (Title XIX, Social Security Act) solely because of the receipt of a payment under this section 18 by the individual or by a member of the individual's household is eligible for state-funded 19 medical assistance under AS 47.25.120 - 47.25.300 (general relief assistance). The individual 20 is entitled to receive, for a period not to exceed four months, the same level of medical 21 assistance as the individual would have received under 42 U.S.C. 1396 - 1396v had the 22 emergency energy relief not been received. 23 (k) An individual who is denied assistance solely because a payment under this 24 section received by the individual or by a member of the individual's household is counted as 25 income or resources under federal law is eligible for cash assistance under AS 47.25.120 - 26 47.25.300 (general relief assistance). Notwithstanding the limit in AS 47.25.130, the 27 individual is entitled to receive, for a period not to exceed four months, the same amount as 28 the individual would have received under other public assistance programs had the emergency 29 energy relief not been received. 30 (l) A program that is established before the effective date of this section, that is 31 administered by the state or any of its instrumentalities or municipalities or by a Native
01 organization under AS 47.27.070, 47.27.200, or 47.27.300, and for which eligibility is based 02 on financial need may not consider a payment under this section as income or resources 03 unless required to do so by federal law. 04 (m) A veteran or the spouse or dependent of a living or deceased veteran who is 05 denied or receives reduced disability payments solely because a payment received under this 06 section by the individual is counted as income is eligible for cash assistance under 07 AS 47.25.120 - 47.25.300 (general relief assistance). Notwithstanding the limit in 08 AS 47.25.130, the veteran or the spouse or dependent of a living or deceased veteran is 09 entitled to receive the same amount as the individual would have received under 38 U.S.C. 10 1315, 1513, 1521, 1541, and 1542 had the emergency energy relief not been received. 11 (n) Notwithstanding any contrary provision of state law, a payment under this section 12 is exempt from levy, execution, garnishment, or any other remedy for debt collection until 13 after the payment has been received by the person. No other exemption applies to emergency 14 energy relief payments received under this section. 15 (o) A form provided by the authority under (e) of this section must include a warning 16 that the submission of incomplete or inaccurate information is punishable as unsworn 17 falsification in the second degree under AS 11.56.210. 18 (p) A person is guilty of a class A misdemeanor if the person 19 (1) uses fuel, payment for which has been partially reimbursed with a payment 20 under this section, 21 (A) for a purpose other than use in a building that is primarily used for 22 one or more residences; or 23 (B) for a building that is owned by a governmental entity; or 24 (2) resells fuel, payment for which has been partially reimbursed with a 25 payment under this section. 26 (q) In this section, 27 (1) "authority" means the Alaska Energy Authority created under 28 AS 44.83.020; 29 (2) "fuel" means heating oil or propane. 30 * Sec. 11. AS 42.45.110(k) is repealed June 30, 2010. 31 * Sec. 12. AS 42.45.115 is repealed.
01 * Sec. 13. Sections 10(a), (b), (d) - (f), (i) - (o), and (q) of this Act are repealed September 1, 02 2010. 03 * Sec. 14. Sections 3 and 6 of this Act take effect June 30, 2010. 04 * Sec. 15. Sections 2, 4, 5, 11, and 12 of this Act take effect October 1, 2008. 05 * Sec. 16. Sections 1 and 7 - 10 of this Act take effect immediately under AS 01.10.070(c).